27 august 2020...2020/08/27 · source: tsx/tsxv market intelligence group, s&p capital iq and...
TRANSCRIPT
© Z/Yen Group 2020
1
Global Financial Centres 2020
Focus On Toronto
Financial Centre Futures
27 August 2020
© Z/Yen Group 2020
2
Focus On Toronto
Professor Michael Mainelli
Executive Chairman
Z/Yen Group
Robert Peterman
Vice-President, Global Business Development
Toronto Stock Exchange, TSX Venture Exchange TMX Group
Jennifer Reynolds
President & CEO
Toronto Finance International
© Z/Yen Group 2020
3
Agenda
14:00 – 14:05 Welcoming Remarks
14:05 – 14:15 Overview of Toronto as a Global Financial Centre
14:15 – 14:30 Toronto Stock Exchange - Supporter Of Innovation & Access To Capital
14:30 – 14:45 Q&A
Toronto Advantage
Toronto: The Centre of Finance in Canada
5
BankingToronto ranks 6th globally in total bank assets
6Source: The Banker IFC Rankings (Oct. 2019); The impact of Toronto’s f inancial sector, Conference Board of Canada, March 2020; Pandemic Accelerates Canada’s Shift to Electronic Banking, Bloomberg, April 2020
Six largest Canadian banks spend more than
$13 billion annually on technology (second-largest and fastest-growing expense) –$100 billion on technology since financial crisis.
Canada’s big five banks are all ranked in the global
top 100 largest banks. RBC, the fifth-largest bank in
North America, leads the way at number 23.
More than 1/3 of the revenues from Canada’s
five largest banks are generated abroad.
The big five banks’ market capitalization has
more than doubled over the last 10 years.
6
InsuranceCanada’s insurers provide coverage and services to 60 million people in 20 jurisdictions
7Source: Canadian Life and Health Insurance Association, CLHIA Facts, 2019 Edition; Company Annual Reports; The Impact of Toronto’s Financial Sector, Conference Board of Canada, March 2020.
Life & Health Insurance
− Canada is home to 3 of the top 15 life insurance firms globally which have
assets totaling more than $2.5 trillion
− The life industry employs over 156,000 personnel in Canada, with more
than a quarter in the Toronto region
− Manulife and Sun Life, two of Canada’s largest insurance companies, relied
on international operations for 76 and 63 per cent of their earnings
Property & Casualty Insurance
− The Toronto Region hosts the headquarters for most of Canada’s largest P&C insurers including:
7
Pension Funds & Asset ManagementToronto has a large pool of competitive asset management companies and expertise
8Source: The Impact of Toronto’s Financial Sector, Conference Board of Canada, March 2020
Seventeen Canadian pension funds
rank among the largest both in North America and globally, as reported by Pension & Investments World 300
$10trillion
57%
The share of foreign investment in major
Canadian pension fund assets has more than doubled, from 24 per cent in 2000 to 57 per cent in 2019
Canada is ranked third among
OECD countries in total assets of funded and private pension plans
Canadian financial institutions and
pension funds hold $10 trillion in assets
17
3rd
Toronto is ranked sixth globally in total
bank assets by The Banker6th
8
9
Globally in Clean
Technology
1stGlobally in
Mining
1st
Globally in
New ListingsGlobally in New
International Listings
2nd2nd
Globally in Listed
Companies
2nd
Toronto Stock Exchange: A Global Leader
A Vibrant FinTech Ecosystem
10Source: The Impact of Toronto’s Financial Sector, Conference Board of Canada, March 2020; CBRE’s Scoring Tech Talent 2020.CBCBRE’s Scoring Tec
Toronto Region added second
most tech jobs in North
America over last 5 years2nd
Toronto Region is North America’s
second largest financial centre with
the second highest density of
startups in the world
2nd
Toronto had one of the highest
growth rates globally for FinTech
equity financing with a CAGR of
118% from 2010 to 2018
118%
Toronto has the densest cluster of
AI startups in the world1st
Canada’s Dynamic AI Ecosystem
11Sources: The governments of Canada and Quebec and the international community join forces to advance the responsible development of ar tif icial intelligence; Canada’s AI Ecosystem Government Investment Propels
Private Sector Grow th
− Canada has a thriving AI ecosystem composed of more than 850 start-
up companies, 20 public research labs, 75 incubators and accelerators,
and 60 groups of investors from across the country
− Canada's AI sector ranks 4th globally according to the Global AI Index
− Canada’s dynamic AI private sector has attracted $3 billion in
new investment and created 50,000 jobs
− Canada has produced the most AI patents per million people among G7 nations and China
Global Investment and Innovation Hubs
Supporting AIToronto Region has:
12Sources: The governments of Canada and Quebec and the international community join forces to advance the responsible development of ar tif icial intelligence; Canada’s AI Ecosystem Government Investment Propels
Private Sector Grow th
− The densest cluster of AI startups in the world
− University of Toronto AI research partnerships
with Microsoft, Google, Uber, Thomson Reuters,
Samsung, IBM, Amazon, Intel, NVIDIA,
LG, Electronics and General Motors, among others
− Leading innovation hubs supporting AI including:
Creative Destruction Lab (CDL), MaRS and
Next AI
Canada - A Leader in Technology Trends
13Sources: https://www.newswire.ca/news-releases/canada-is-the-fourth-largest-cybersecurity-hub-in-the-world-597559631.html; https://www.serene-risc.ca/en/cybersecurity-programs;
https://www2.deloitte.com/content/dam/Deloitte/ca/Documents/risk/ca-cyber-talent-campaign-report-pov-aoda-en.PDF
Toronto is also home to
Canada’s leading blockchain
thinktank, the Blockchain
Research Institute
Half of Canadian Distributed
Ledger Technology (DLT) start-
ups are already headquartered
in Toronto
Canada is 4th most active country
globally for cybersecurity deals
Government of Canada unveiled
National Cyber Security Strategy in
mid-2018
125 cybersecurity programs offered
by Canadian postsecondary
institutions
Demand for cyber talent in Canada
increasing by 7% annually
Globally recognized institutes
such as:
Institute for Quantum
Computing
Perimeter Institute for Theoretical
Physics
Quantum NanoFab
Facility
World’s first quantum machine
learning start-up program at
Creative Destruction Lab
QUANTUM BLOCKCHAIN CYBERSECURITY
Highly Educated WorkforceHigher Education Degrees Per 100,000 People
14Source: Statistics Canada 2016 Census; US Census Bureau; 2016 American Community Survey
The Toronto Region has the most highly educated population in the OECD, with more higher education degrees per
100,000 people than any of our U.S. comparator cities*
0
10,000
20,000
30,000
40,000
50,000
Toronto
Region
San
Francisco
Washington,
DC
Boston Seattle Denver Pittsburgh New York Philadelphia Chicago Atlanta Charlotte Dallas
De
gre
es p
er 1
00
k
Global Talent AccessToronto’s deep highly skilled talent pool is supplemented by easier access to global talent
15
The Strategy includes:
− A streamlined application process
− 2-week application-processing standard
− Dedicated service/support for companies
− No work permit requirement for short-term, highly skilled work and brief
academic stays
National Global Skills Strategy provides businesses in Canada with a faster way to bring in highly skilled global
talent to scale-up and grow.
Toronto Cost AdvantageThe Toronto Region is more cost-effective in areas such as:
16
The Toronto Region has
health costs that are half
that of U.S. counterparts.
All citizens and permanent
residents in Ontario have
access to our universal
health care system under
the Ontario Health
Insurance Plan
Research and Development
Transportation and UtilitiesFacility Leases
Labor and Benefits
Digital Services
Toronto’s Operational AdvantageOccupancy Costs (USD$ per workstation, 2017)
17Source: Cushman & Wakefield, 2017
Strong Policy Environment from
Government
18
− Federal Government reformed legislation to encourage greater partnerships/collaboration
between incumbents and FinTechs
− Federal Government is formally reviewing Open Banking (learning best practices from
UK, EU and Australia). This is also being complimented by many leading Canadian financial
services firms adopting FDX technical standards for secure financial data sharing.
− Federal Government ensuring a modern payments system
− Canadian securities regulators have a regulatory sandbox for FinTechs
− Ontario Securities Commission joined the Global Financial
Innovation Network (GFIN) to coordinate with global regulators
https://www.newswire.ca/news-releases/leading-canadian-financial-services-firms-moving-to-adopt-the-fdx-technical-standards-for-secure-financial-
data-sharing-859396367.html
Toronto is DiverseImmigration is not a problem in our country. It is a solution.
Source: Pew Research Center, March 2019, “Around the World, More Say Immigrants Are a Strength Than a Burden
Source: The Global Liveability Index 2019
>51%
Of the population are foreign
born, speaking over 180
languages and dialects7th Most livable city in
the world
In 2019, Canada welcomed the highest
number of new immigrants in more than a
century, opening its doors to more than
340,000 people from 175 different
countries
+340k
Recent international survey showed
Canadians have the most favourable
opinion of immigrants among the world’s
top migrant destination countries
1st
19
Contact TFIJennifer Reynolds+1 (416) 933-6784
325 Front Street West, Suite 300
Toronto, ON M5V 2Y1
www.tfi.ca
/Toronto-Finance-International@TFI_Canada
Follow us online
A Capital Opportunity
August 2020
GLOBAL LEADERSHIP, WORLD-CLASS FINANCIAL INSTITUTIONS AND ECONOMIC STABILITY
Source: The Economist Intelligence Unit, via Global Affairs Canada, November 2019.
The World Economic Forum ranked Canada as one of the top 2 soundest banking systems for 11 consecutive years.
CANADA
#1IN G20 FOR DOING BUSINESS
(2020-2024)
#1LOWEST DEBT-TO-GDP
AMONG G7
#2SOUNDEST BANKING
SYSTEM IN THE G20
SOUNDEST IN THE G7
23
GLOBAL MARKET FOR CAPITAL
$39 BILLION RAISED ON TSX/TSXV IN 2019
Source: TSX/TXV Market Intelligence Group, S&P Capital IQ and World Federation of Exchanges. As at December 31, 2019. Country ranking reflects the total equity capital raised by companies listed on the stock exchanges and does not include exchange groups that encompass multiple countries.
COUNTRY RANKING: EQUITY CAPITAL RAISED (2015-2019)
$254BIN EQUITY CAPITAL RAISED ON TSX/TSXV IN
THE PAST 5 YEARS
USNYSE, NASDAQ1.
2.CHINA & HONG KONG HKSE, SHANGHAI SE
3.
UNITED KINGDOMLSE/AIM
4.
CANADA
TSX/TSXV
5.AUSTRALIAASX
24
A TRULY DIVERSE MARKET
$3 TRILLION OF MARKET CAPITALIZATION ACROSS DIVERSE SECTORS
Source: TSX/TSXV Market Intelligence Group; as at December 31, 2019.
Financial Serv ices28%
Energy16%
Mining12%
Industrials11%
Innov ation9%
Consumer Products, 8%
ETFs/Closed-End Funds/SPACs/CPCs
7%
Comm. & Media6%
Real Estate, 3%
$3TTOTAL MARKET CAPTIALIZATION
25
$5 TRILLION INSTITUTIONAL MARKET
A TSX LISTING MAXIMIZES ACCESS TO CANADIAN INSTITUTIONAL INVESTORS
Source: SI Research: Managed Money Adv isory Serv ice—Canada, Fall 2018.1Pension plan AUM includes priv ate equity , real estate and inf rastructure div isions. Source: Inv estor Economics, Spring 2016 Managed Money Report.
TOP CANADIAN PENSION PLANS1TOP CANADIAN MONEY MANAGERS
INSTITUTION AUM (C$ BN)
Canada Pension Plan Investment Board $283
Caisse de Dépôt et Placement du Québec $248
Ontario Teachers Pension Plan $171
British Columbia Investment Management $124
Public Sector Pension $112
Alberta Investment Management Company $90
Ontario Municipal Employees Retirement $77
Healthcare of Ontario Pension Plan $64
Ontario Pension Board $22
OPTrust $18
Other Pension Funds/Undisclosed $699
Total $1,908
INSTITUTION AUM (C$ BN)
RBC Asset Management $319
TD Asset Management $312
BlackRock $180
CIBC Asset Management $167
Fidelity Investments Canada $139
CI Investments $133
Scotia Asset Management $131
Mackenzie Investments $129
Manulife Asset Management $126
BMO Asset Management $117
Other AUM $1,753
Total $2,882
26
GLOBAL CAPITAL AND LIQUIDITY
THE WORLD’S LARGEST ASSET MANAGERS INVEST AND TRADE ON TSX
40%OF DAILY TRADING ORIGINATES
FROM OUTSIDE CANADA
25%OF TSX AND TSXV MEMBER FIRMS ARE
HEADQUARTERED OUTSIDE CANADA
27
GLOBAL LEADERSHIP, WORLD-CLASS ACCESS TO CAPITAL AND LIQUIDITY
Source: TSX/TSXV Market Intelligence Group, S&P Capital IQ and S&P Global Market Intelligence; as at December 31, 2019.
TSX & TSXV
#1GLOBAL MARKET FOR MINING
CAPITAL (2016 - 2020)
50NEW INNOVATION
SECTOR LISTINGS
IN 2019
#1LISTING VENUE FOR
US COMPANIES
OUTSIDE THE US
Section 2Mining Sector Overview
29
ACCESS TO CAPITAL
TOP EXCHANGE FOR MINING CAPITAL GLOBALLY
Source: TSX/TSXV Market Intelligence Group and S&P Capital IQ, as at December 31, 2019.
53%OF THE NUMBER OF MINING EQUITY
FINANCINGS GLOBALLY IN THE PAST 5
YEARS
37%OF THE MINING EQUITY CAPITAL
RAISED GLOBALLY IN THE PAST 5
YEARS
BY PRIMARY COMMODITYGLOBAL MINING EQUITY CAPITAL RAISED 2015-2019(C$B)
$43.6B
$19.3B
$9.9B
$7.3B $7.2B
TSX/TSXV ASX NYSE/NYSE Amer. HKEx LSE/AIM
30
THE LEADING MINING EXCHANGE
LATIN AMERICAN MINING COMPANIES LOOK TO CANADA
Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence.
As at December 31, 2019.
Mexico
126
Brazil
36
Venezuela
3
Peru
57
Argentina
46
Bolivia
7
Colombia
30
Uruguay
3
Chile
33
French
Guiana
4
Suriname
3
Guyana
11
Ecuador
15
478TSX/TSXV MINING COMPANIES IN LATIN AMERICA
1045LATIN AMERICAN MINING PROPERTIES
$1.6BEQUITY CAPITAL RAISED IN 2019 ON TSX/TSXV BY COMPANIES WITH MINING PROJECTS IN LATIN AMERICA
5NEW MINING LISTINGS WITH PROJECTS IN LATIN AMERICA
Central America
30
Section 3Innovation Sector Overview
32
INVESTOR DEMAND IN INNOVATION
CANADA HAS A VIBRANT CAPITAL MARKETS ECOSYSTEM IN THE INNOVATION SECTOR
Source: TSX/TSXV Market Intelligence Group; Innovation sector includes technology, clean technology, renew able energy and life sciences
companies; as at December 31, 2019; new listings rankings exclude
graduations, comedow ns, and CPC/ETF listings.
SECTOR FOR NON-CANADIAN IPOs AND NEW LISTINGSON TSX/TSXV IN 2015-2019
SECTOR FOR IPOs AND NEW LISTINGSON TSX/TSXV IN 2015-2019
$45B204
#1 #1
IN EQUITY CAPITAL RAISEDON TSX/TSXV IN 2015-2019
$8 BILLION RAISED BY THE INNOVATION SECTOR IN 2019
IPOs AND NEW LISTINGSON TSX/TSXV IN 2015-2019
50 NEW INNOVATION LISTINGS IN 2019
33
YTD
Annualized Total Returns (%)
1 YEAR 3 YEAR 5 YEAR 10 YEAR
Benchmarks
S&P/TSX Composite Index (TR) -7.5 -2.2 3.9 4.5 6.4
S&P 500 (TR) -3.1 7.5 10.7 10.7 14.0
NASDAQ -100 (TR) 16.9 33.8 22.9 19.6 20.7
NADSAQ Composite (TR) 12.1 25.6 17.9 15.1 16.9
Dow Jones Industrial Average -9.6 -2.9 6.5 7.9 10.2
Innovation Sector
S&P/TSX Capped Information Technology Index (TR) 37.8 53.8 38.9 28.2 20.3
S&P/TSX Renewable Energy & Clean TechnologyIndex (TR)
14.5 25.7 8.2 12.4 9.6
INVESTOR RETURNS IN INNOVATION
THE MAIN CANADIAN INNOVATION INDICES HAVE OUTPERFORMED KEY MARKET BENCHMARKS OVER THE LAST DECADE
Source: S&P Dow Jones Indices and NASDAQ; as at June 30, 2020. TR = total return.
34
CANADIAN AND GLOBAL INNOVATORS
TSX IS HOME TO LEADING CANADIAN AND GLOBAL INNOVATORS
Source: TSX/TSXV Market Intelligence Group; as at June 30, 2020.
CompanyMarket
Cap. (C$)
Shopify Inc. $138.6 B
Constellation Software Inc. $32.8 B
CGI Inc. $19.6 B
Open Text Corporation $19.6 B
Ceridian HCM Holding Inc. $15.6 B
Descartes Systems Group Inc. (The) $6.0 B
CAE Inc. $5.8 B
Kinaxis Inc. $5.1 B
BlackBerry Limited $4.2 B
Enghouse Systems Limited $3.9 B
CompanyMarket
Cap. (C$)
Brookfield Renewable Partners L.P. $12.6 B
Algonquin Power & Utilities Corp. $9.4 B
Northland Power Inc. $6.7 B
Ballard Power Systems Inc. $5.0 B
TransAlta Renewables Inc. $3.8 B
Innergex Renewable Energy Inc. $3.7 B
Boralex Inc. $2.9 B
Cascades Inc. $1.4 B
NFI Group Inc. $1.0 B
SunOpta Inc. $1.0 B
CompanyMarket
Cap. (C$)
Bausch Health Companies Inc. $8.8 B
Canopy Growth Corporation $7.7 B
Cronos Group Inc. $2.8 B
Aurinia Pharmaceuticals Inc. $2.4 B
Aurora Cannabis Inc. $1.9 B
Aphria Inc. $1.6 B
Knight Therapeutics Inc. $919 M
Trillium Therapeutics Inc. $906 M
BELLUS Health Inc. $848 M
Aptose Biosciences Inc. $650 M
TECHNOLOGY CLEANTECH & RENEWABLES LIFE SCIENCES
35
DOCEBO INC.
TSX:DCBO
Docebo Inc. offers cloud-based learning platform for both internal and external enterprise learning with real time tracking of trainin g results, optimizing time, and reducing costs associated with traditional learning methods. Milan, Italy
HEADQUARTERS
October 8, 2019DATE OF LISTING
125%SHARE PRICE PERFORMANCE
SINCE LISTING
MARKET CAPITALIZATION (C$)
146%MARKET CAPITALIZATION SINCE LISTING
Source: TSX/TSXV Market Intelligence Group and S&P Capital IQ.
As at June 30, 2020.
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
0.00
5.00
10.00
15.00
20.00
25.00
30.00
35.00
40.00
Oc
t-08
-20
19
Oc
t-22
-20
19
No
v-0
5-20
19
No
v-1
9-20
19
De
c-0
3-20
19
De
c-1
7-20
19
De
c-3
1-20
19
Jan
-14-
202
0
Jan
-28-
202
0
Fe
b-11
-20
20
Fe
b-25
-20
20
Mar
-10
-20
20
Mar
-24
-20
20
Ap
r-07
-20
20
Ap
r-21
-20
20
May
-05-
20
20
May
-19-
20
20
Jun
-02-
202
0
Jun
-16-
202
0
Jun
-30-
202
0
Vo
lum
e T
rad
ed
(M
)
Sh
are
Pri
ce
(C
$)
$1,024M
36
tmx.com
The document and the information contained therein are provided “as is” for information purposes only and are not intended to provide investment, f inancial or other advice, and should not be relied on for any trading, business, f inancial or other purposes. The information provided is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group Limited and its aff iliated companies (collectively, “TMX”) do not endorse or recommend any securities referenced in this document. Neither TMX Group Limited, nor any of its affiliated companies or entities, guarantees the completeness of the information contained in this document and w e are not responsible for any errors or omissions in, or your use of, or reliance on, the information.
© 2020 TSX Inc. All rights reserved. Do not sell, reproduce or modify this document w ithout TSX Inc.’s prior w ritten consent. TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, TSX Venture Exchange and TSXV are the trademarks of TSX Inc.
RECEIVE THE MONTHLY MIG REPORT IN YOUR INBOX
STAY UP TO DATE WITH TSX AND TSXV
TSX.COM/MIG @TSX_TSXV
Robert Peterman
Toronto Stock Exchange and TSX Venture Exchange
T +1 416 947-4305
Global Technology& Innovation Dani Lipkin ([email protected])
Global Energy David Chelich ([email protected])
Global Mining Dean McPherson ([email protected])
ETFs & Structured ProductsGraham Mackenzie ([email protected])
Keith Wu ([email protected])
Quebec/Eastern Canada (Montreal) Bruno Desmarais ([email protected])
Pacific Northwest Julia Yan ([email protected])
VICE PRESIDENT, GLOBAL BUSINESS DEVELOPMENT
SECTOR AND REGIONAL LEADERS
© Z/Yen Group 2020
37
Toronto In The Indices
Global Financial Centres Index Global Green Finance Index
➢ Ratings trending upwards for both the GFCI and GGFI
➢ Strong competition from other centres➢ Continued need for connection with
worldwide centres
© Z/Yen Group 2020
38
Questions, Comments, Answers?
© Z/Yen Group 2020
39
With Thanks To Our Sponsors
© Z/Yen Group 2020
40
Thank You